Weiss Ratings Reaffirms "Sell (D)" Rating for Allegro MicroSystems (NASDAQ:ALGM)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D)" rating for Allegro MicroSystems (NASDAQ: ALGM), indicating a negative outlook for the stock.
• Contrarily, several analysts, including Barclays and Wells Fargo, have increased their price targets and provided favorable ratings, making the consensus rating for ALGM a "Moderate Buy" with an average price target of $36.78.
• Allegro MicroSystems' recent quarter results met expectations, with revenue growth of 21.9% year-over-year and earnings per share at $0.09, matching analyst forecasts.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report)'s stock had its "sell (d)" rating restated by investment analysts at Weiss Ratings in a report issued on Friday,Weiss Ratings reports.

A number of other equities research analysts have also recently commented on ALGM. Barclays raised their price target on shares of Allegro MicroSystems from $23.00 to $30.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Wells Fargo & Company reissued an "overweight" rating and set a $42.00 price target (up from $33.00) on shares of Allegro MicroSystems in a research report on Wednesday, July 16th. Needham & Company LLC raised their price objective on shares of Allegro MicroSystems from $25.00 to $37.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. UBS Group decreased their price objective on shares of Allegro MicroSystems to $42.00 and set a "buy" rating for the company in a report on Monday. Finally, Wall Street Zen raised shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $36.78.

Allegro MicroSystems Trading Up 0.6%

Shares of ALGM traded up $0.20 during trading hours on Friday, hitting $31.19. 1,726,352 shares of the stock were exchanged, compared to its average volume of 2,566,502. Allegro MicroSystems has a fifty-two week low of $16.38 and a fifty-two week high of $38.45. The company has a debt-to-equity ratio of 0.34, a current ratio of 3.70 and a quick ratio of 2.26. The business has a 50-day moving average of $30.02 and a 200-day moving average of $28.75. The firm has a market capitalization of $5.77 billion, a P/E ratio of -84.32 and a beta of 1.72.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.09 earnings per share for the quarter, hitting the consensus estimate of $0.09. The company had revenue of $203.41 million during the quarter, compared to analysts' expectations of $197.82 million. Allegro MicroSystems had a negative net margin of 9.00% and a positive return on equity of 2.09%. Allegro MicroSystems's revenue for the quarter was up 21.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.03 earnings per share. Allegro MicroSystems has set its Q2 2026 guidance at 0.100-0.140 EPS. On average, research analysts expect that Allegro MicroSystems will post 0.01 EPS for the current year.

Insider Buying and Selling

In other Allegro MicroSystems news, CAO Roald Graham Webster sold 8,266 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $32.81, for a total value of $271,207.46. Following the completion of the transaction, the chief accounting officer owned 17,300 shares of the company's stock, valued at $567,613. The trade was a 32.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Allegro MicroSystems

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Allegro MicroSystems by 18.4% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 26,883 shares of the company's stock valued at $668,000 after purchasing an additional 4,185 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Allegro MicroSystems by 144.3% in the 1st quarter. GAMMA Investing LLC now owns 4,155 shares of the company's stock valued at $104,000 after purchasing an additional 2,454 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of Allegro MicroSystems by 36.7% in the 1st quarter. Envestnet Asset Management Inc. now owns 104,966 shares of the company's stock valued at $2,638,000 after purchasing an additional 28,179 shares in the last quarter. KLP Kapitalforvaltning AS boosted its stake in shares of Allegro MicroSystems by 10.4% in the 2nd quarter. KLP Kapitalforvaltning AS now owns 27,500 shares of the company's stock valued at $940,000 after purchasing an additional 2,600 shares in the last quarter. Finally, Avantax Advisory Services Inc. purchased a new stake in shares of Allegro MicroSystems in the 1st quarter valued at $278,000. Hedge funds and other institutional investors own 56.45% of the company's stock.

Allegro MicroSystems Company Profile

Allegro MicroSystems, Inc, together with its subsidiaries, designs, develops, manufactures, and markets sensor integrated circuits (ICs) and application-specific analog power ICs for motion control and energy-efficient systems. Its products include magnetic sensor ICs, such as position, speed, and current sensor ICs; and power ICs comprising motor driver ICs, regulator and LED driver ICs, and isolated gate drivers.

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